SOURCE: Alternate Energy Corporation

May 03, 2006 09:45 ET

Alternate Energy Corp. Secures "Letter of Interest" to Locate a Bulk Hydrogen Production Plant at Brazilian Food Processing Company

BOM Brasil, a Worldwide Supplier of Castor Oil and User of About USD $1 Million of Hydrogen per Year, Expects Significant Savings by Leveraging AEC's Bulk Hydrogen Process

BURLINGTON, ON -- (MARKET WIRE) -- May 3, 2006 -- Alternate Energy Corporation (OTC BB: ARGY), the developer of an innovative technology for the production of hydrogen and select commodity chemical products, today announced the receipt of a "letter of interest" from BOM-Brasil Óleo de Mamona Ltda, a company that processes castor beans and is today a worldwide supplier of castor oil and other derivative products.

AEC and BOM Brasil's management have been in general discussions with regard to the possible installation of an on-site AEC Bulk Hydrogen production facility next to BOM Brasil's operation in Bahia, Brasil -- the primary castor bean production area in the Americas. AEC's plant would supply bulk hydrogen to BOM at a significant reduction in cost to what they are currently paying for their 'trucked-in' hydrogen. In addition to potentially supplying BOM with low-cost, high-quality hydrogen, AEC's plant would also produce choice commodity chemical products for sale into world markets.

Mr. Adrian Hanzi, Managing Director of BOM Brasil, stated, "We believe it to be of yours and our best interest to explore the opportunity to place similar plants in other locations." Mr. Hanzi commented further, "It is obvious there are many details to be worked out prior to entering into an acceptable agreement between our companies, but we are looking forward to moving this project ahead as soon as possible."

Mr. Blaine Froats, CEO of AEC, said, "We are pleased to know that Mr. Hanzi of BOM Brasil is prepared to move this project ahead on a timely basis. The ball is now in our court, and we are already in the process of selecting a first-class engineering firm to facilitate the planning, design, project management and commissioning of the bulk hydrogen/commodity chemical plant on location in Brazil."

About BOM-Brasil

Founded in 1988, BOM-Brasil Óleo de Mamona Ltda is located in the city of Salvador, a sunny resort in the state of Bahia, situated in north-eastern Brazil. BOM's location is strategic, as the state of Bahia is the principal producing area of castor beans in the Americas, with Salvador being one of the largest shipping ports in South America.

The company is a major worldwide producer of castor oil and several of its derivatives, and supplies its products to many clients all around the globe. The company has long recognized its place in increasing quality/environmental/social concerns by end consumers. BOM-Brasil is ISO 9000 certified since 1995 and fully complies with all environmental requirements. A continuous upgrading in production and service is an essential process that BOM-Brasil seeks tirelessly. For more information go to: www.bombrasil.com

About Alternate Energy Corporation (AEC; www.cleanwatts.com)

Alternate Energy Corporation (AEC) is energizing the hydrogen economy with its on-demand hydrogen production technology that provides bulk production of hydrogen and saleable commodity chemical products. These systems have global opportunities in multiple market segments. AEC's proprietary discovery in metallurgy and process technology permits the generation of hydrogen from water through a "green" process at a competitive level to the fossil fuel Kwh cost of energy. AEC believes its systems can have a revolutionary impact on the energy industry. For more information go to: www.cleanwatts.com

Forward-Looking Statements:

Statements herein express management's beliefs and expectations regarding future performance and are forward-looking and involve risks and uncertainties, including, but not limited to, raising working capital and securing other financing; responding to competition and rapidly changing technology; and other risks. These risks are detailed in AEC's filings with the Securities and Exchange Commission, including Forms SB-2, 10-KSB, 10-QSB and 8-K. Actual results may differ materially from such forward-looking statements.

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